360 Payments: Finding a Payment Processor for “High-Risk” Product Sales

If your business is considered “high-risk” then it may make it more difficult to get approved for a payment processor to use for your transactions. High-risk businesses and products include:

• Business with Little or No Credit Card Processing History
• High-Cost Products (i.e., Airline Tickets or Timeshares)
• Business with Poor Credit History
• Computer Software or Hardware
• Adult Products or Services
• Pharmaceuticals, Drugs or Supplements
• Firearms & Ammunition
• eCigarettes

Payment processors take on the risk of your transactions and also impose transaction limits to try and reduce that risk. If you are new to the eCommerce space or you are looking to sell products that are deemed as high risk, then 360 Payments is the payment processor you will want to look at to implement into your online sales platform.

About 360 Payments

The Inventory Source team is partnering up with 360 Payments to help provide a first-class payments solution to our customers, whether you are new to dropshipping, or are well-established and are looking to branch-off into selling products that would be otherwise deemed as “high-risk”.

Below, you can take a look at an overview of what 360 Payments processor can offer your business:

Understanding High-Risk Product Sales

High-risk product sales refer to industries or items flagged by financial institutions due to higher-than-average risks. These risks often include legal complexities, elevated chargeback rates, or reputational concerns. Examples of high-risk products include CBD, firearms, supplements, adult products, online gambling services, and subscription-based businesses.

Why Are These Products Considered High Risk?

Payment processors label certain products as high-risk due to various factors. High chargeback rates are a common issue, where customers dispute payments, leading to additional fees. Legal restrictions, such as varying regulations across regions, complicate the processing of items like firearms or CBD. Additionally, regulatory uncertainties often deter standard processors from approving such businesses.

Common Challenges in Payment Processing

Finding a payment processor can be a daunting task for high-risk businesses. Many face rejections during the application process due to the perceived risks. Even approved accounts may encounter higher processing fees, making transactions expensive. Another challenge is the sudden termination of accounts, which can disrupt cash flow and operations.

Key Features to Look for in a High-Risk Payment Processor

Finding the right payment processor is crucial for businesses dealing with high-risk products. Here are key features to consider:

• Industry Experience – Look for processors with a strong track record in high-risk industries. Their expertise ensures they understand the unique challenges and can offer tailored solutions.
• Transparent Fee Structures – Avoid processors with hidden fees. Opt for a provider that clearly outlines costs, including chargeback rates and fees for international transactions. Transparency helps you manage costs effectively.
• Secure and Scalable Platforms – Choose a processor with advanced security features like PCI compliance and fraud prevention tools. A scalable platform will support your business growth and handle increasing transaction volumes seamlessly.
• Reliability – Processing consistency is essential. Reliable processors minimize downtime and ensure smooth operations, helping you maintain customer trust and business continuity.
• Flexible Payment Options – Select a provider that supports multiple currencies, diverse payment methods, and subscription-based billing. This flexibility caters to a broader audience and enhances customer convenience.
• Additional Considerations – Check for responsive customer support to address issues promptly. Also, evaluate integration capabilities to ensure compatibility with your ecommerce platform or systems.

How to Evaluate Potential Payment Processors

Choosing the right payment processor is crucial for high-risk product sales. Here’s how to ensure you make the best choice:

Research Their Reputation

Start by checking reviews and ratings. Look for feedback from other high-risk merchants to understand the processor’s reliability, responsiveness, and expertise in handling unique challenges. A strong reputation often indicates consistent performance and trustworthy service.

Ask for a Demo or Trial Period

Most reputable payment processors offer a demo or trial period. Use this to test their platform’s usability and features. Evaluate the ease of navigation, reporting tools, and the setup process. This ensures you select a processor that meets your operational needs.

Understand Their Policies on Chargebacks

Chargebacks are common in high-risk industries. Learn how the processor handles disputes, refunds, and fraud prevention. A clear and fair policy can save you from unexpected losses and protect your business from excessive fees.

Assess Their Integration Capabilities

Ensure the payment processor integrates seamlessly with your ecommerce platform or POS system. Compatibility reduces the risk of technical issues and simplifies your workflow. Look for support for multiple payment gateways and currencies if you sell internationally.

Additional Considerations

Review the fee structure, ensuring transparency without hidden charges. Assess the quality of customer support, as quick resolutions are vital for business continuity. Finally, confirm compliance with industry regulations to avoid legal complications.

Benefits of Partnering with the Right High-Risk Payment Processor

Choosing the right high-risk payment processor can significantly impact your business’s success. These processors specialize in handling businesses considered “high risk” due to industry type, chargeback rates, or regulatory challenges. Here are the key benefits they provide:

Increased Transaction Approvals

High-risk processors have systems designed to minimize declined payments. They understand the complexities of high-risk industries and work with banks to improve transaction approval rates. This ensures smoother sales and higher revenue.

Improved Cash Flow

Reliable payment processing leads to consistent cash flow. The right processor minimizes disruptions, allowing you to focus on business operations without worrying about payment delays.

Enhanced Security

High-risk payment processors prioritize security to protect businesses from fraud and cyberattacks. They offer PCI compliance, encryption, and fraud detection tools. This ensures that sensitive customer data remains safe, reducing liability for your business.

Scalability

As your business grows, a good payment processor can scale with you. They offer flexible solutions like multi-currency support, international processing, and additional payment methods to meet expanding needs.

Reduced Chargeback Risks

Many high-risk processors provide tools to help manage and reduce chargebacks. Features like chargeback alerts, prevention programs, and dispute resolution support can save your business money and maintain your reputation.

Tailored Solutions

These processors often customize services based on your industry and unique requirements. Whether you’re selling firearms, supplements, or CBD products, they offer solutions that address specific challenges.

Common Mistakes to Avoid When Choosing a Payment Processor

Selecting the right payment processor for high-risk product sales can be tricky. Making the wrong choice can lead to costly mistakes and operational headaches. Here are common pitfalls to avoid:

Ignoring Fine Print in Contracts

Many processors include hidden fees or strict terms in their contracts. These could be termination penalties, annual fees, or unexpected charges for chargebacks. Always read the terms carefully and ask questions before signing. Transparency is key to building trust with your provider.

Overlooking Customer Support Quality

Payment issues can happen at any time. Without reliable customer support, even minor problems can escalate. Choose a provider with 24/7 support to resolve urgent issues promptly. Quick responses ensure your business operates smoothly without disruptions.

Choosing Based on Lowest Fees Alone

While low fees might seem attractive, they can come at a cost. Some processors with cheap rates may lack features like fraud prevention, scalability, or reliable service. Balance affordability with essential features to ensure long-term success.

Failing to Confirm Legal Compliance

High-risk industries often have strict regulations. Ensure your payment processor complies with all applicable laws and follows industry standards. A non-compliant processor could expose your business to legal issues and penalties.

Not Considering Scalability

Some processors are better suited for smaller operations and may struggle as your business grows. Evaluate whether the provider can scale with your needs, offering advanced tools and flexible solutions as you expand.

Top High-Risk Payment Processors in the Market

Finding the right payment processor is essential for high-risk businesses. These providers specialize in handling industries with unique challenges like higher chargeback rates, legal restrictions, and compliance requirements. Below is an overview of top high-risk payment processors and their key features.

PaymentCloud

• Specialization – Supports industries like CBD, supplements, and adult products.
• Key Features – Customizable payment solutions, high approval rates, and a user-friendly interface.
• Pros – No setup fees, robust fraud prevention, and excellent customer support.
• Cons – Limited transparency on pricing until consultation.

Durango Merchant Services

• Specialization – Known for handling industries with high fraud risks, such as online gambling and travel.
• Key Features – Advanced fraud detection tools, multi-currency support, and secure payment gateways.
• Pros – Excellent fraud prevention, international processing, and personalized account management.
• Cons – Slightly higher fees compared to other processors.

Host Merchant Services

• Specialization – Competitive rates for high-risk merchants, especially in e-commerce and subscription services.
• Key Features – Transparent pricing, easy integration with popular platforms, and fast approval.
• Pros – Affordable rates, straightforward setup, and reliable processing.
• Cons – May not support highly regulated industries like firearms.

Soar Payments

• Specialization – Focuses on industries such as firearms, supplements, and debt collection.
• Key Features – Tailored solutions for regulated industries, secure payment processing, and fraud prevention.
• Pros – Industry-specific expertise, great customer support, and flexible pricing options.
• Cons – Limited global payment capabilities.

PayKings

• Specialization – Offers robust solutions for international merchants and high-risk industries.
• Key Features – Multi-currency support, fraud protection, and scalable payment solutions.
• Pros – Excellent customer service, global payment support, and extensive experience.
• Cons – Higher initial fees for setup.

Choosing the Right Processor

Each payment processor has its strengths, and the best choice depends on your business needs. PaymentCloud is ideal for CBD and adult products, while Soar Payments caters to firearms and other regulated markets. PayKings is a strong contender for international support. Evaluate your industry requirements and compare features to find the best match for your high-risk business.

How 360 Payments Can Help High-Risk Merchants

360 Payments is a trusted payment processing company that specializes in helping businesses across various industries, including high-risk sectors. With years of experience, they understand the unique challenges faced by high-risk merchants. Their services are designed to provide secure, efficient, and reliable payment solutions tailored to meet specific business needs. By offering innovative tools and personalized support, 360 Payments ensures that merchants can focus on growing their businesses without worrying about payment processing hurdles.

Why Choose 360 Payments?

360 Payments stands out for its commitment to providing tailored solutions and exceptional service to high-risk merchants.

• Tailored Solutions – Each business is unique, and 360 Payments ensures that its payment processing services are customized to align with your business model and goals. Whether you sell CBD products, firearms, or other regulated items, they offer solutions to handle transactions smoothly.
• Transparent Pricing – Hidden fees can be a significant burden for high-risk merchants. 360 Payments maintains a transparent pricing structure, allowing you to plan your costs accurately and avoid unexpected expenses.
• Industry-Specific Support – High-risk merchants often face unique regulatory challenges. 360 Payments provides dedicated support to help you navigate compliance requirements and manage chargebacks effectively. Their team has in-depth knowledge of high-risk industries, ensuring you get the guidance you need.

Additional Benefits

• Security and Fraud Prevention – 360 Payments prioritizes security with PCI-compliant solutions and advanced fraud detection tools, protecting your business from potential threats.
• Seamless Integration – Their payment processing systems integrate smoothly with various ecommerce platforms, POS systems, and other business tools, ensuring a hassle-free setup.
• Reliable Customer Support – 360 Payments offers responsive and knowledgeable customer service, addressing your concerns promptly. This ensures that any issues are resolved quickly, minimizing disruptions to your business.

Conclusion

A processor that understands your industry ensures smoother transactions and fewer disruptions. By evaluating your current provider or exploring reliable options like 360 Payments, you can secure better rates, improved security, and enhanced customer experiences. High-risk merchants face unique challenges, but with the right partner, these hurdles can be managed effectively. Take action today to find a payment processor that aligns with your business needs. With thoughtful planning and the right support, your business can thrive in the competitive high-risk marketplace.

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